Why it matters: IAG’s accounts indicate concurrent legal claims amount to $7b.
However, it has no net exposure to any liabilities stemming from its former agency Bond & Credit Co.
IAG is defending the actions.
IAG has disclosed $7 billion in legal claims stemming from insurance written by a former commercial partner, most of which is represented by policies issued to collapsed financier Greensill Capital.
In a detailed footnote to its full-year financial statements, IAG said it is dealing with 20 separate legal claims in Australia’s Federal Court linked to trade credit insurance policies issued by Sydney-based Bond & Credit Co. IAG owned a 50 per cent stake in BCC until April 2019.
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Jenny Wiggins writes on business, specialising in infrastructure, telecommunications and transport. Connect with Jenny on Twitter. Email Jenny at jwiggins@afr.com
Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane. Email Liam at liam.walsh@afr.com.au
